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Worldline Sa — Ingenico — FY2005 Earnings Presentation

25 slides from Worldline Sa's earnings presentation, Mar 16, 2006

  1. Slide 1: Results for 2005: Policies and Achievements

    RESULTS FOR 2005 POLICIES AND ACHIEVEMENTS March 16, 2006 Espace Charles-Louis Havas “The beginning of wisdom is to call things by their names.” Confucius

  2. Slide 2: Program

    PROGRAM KEY FINANCIALS IN 2005 O. ALDRIN POLICIES AND ACHIEVEMENTS A. d’ANGELO QUESTIONS & ANSWERS Results for 2005 2 March 16, 2006

  3. Slide 3: Key Financials in 2005

    & Ingenico KEY FINANCIALS IN 2005 © ——— singenicoBly

  4. Slide 4: Financials in 2005: Key figures in the second half

    FINANCIALS IN 2005 Key figures in the second half ƒ H2 2005 revenue 6.8% higher than in H2 2004 (LIKE-FOR-LIKE BASIS) ƒ H2 2005 gross margin 2.6 points above H1 2005 ƒ H2 2005 operating profit = 3.1% of revenues ƒ Cash and cash equivalents: €109.3 million Results for 2005 4 March 16, 2006

  5. Slide 5: Year-on-year comparison (1/2)

    2005/2004 income statements Year-on-year comparison (1/2)* € in millions 2004 2005 Revenue 427.4 436.9 Gross profit 163.2 167.7 % of revenue 38.2% 38.4% Indirect costs <32.1> <37.2> % of revenue - 7.5% - 8.5% R&D <32.4> <38.0> % of revenue - 7.6% - 8.7% S&M <30.1> <31.6> % of revenue - 7.0% - 7.2% G

  6. Slide 6: Year-on-year comparison (2/2)

    2005/2004 income statements Year-on-year comparison(2/2) € in millions 2004 2005 Operating profit 15.7 8.2 3,7% 1,9% Exceptional items <3.9> <38.6> EBIT 11.8 <30.4> Financial Costs <5.3> <3.2> Income tax <3.9> <2.5> Goodwill & Other assets held for sale 0.0 <4.0> NET PROFIT/(LOSS) 2.6 <40.1> Results

  7. Slide 7: Half-year comparison

    2005/2004 income statements Half-year comparison* € in millions H1 2004 H2 2004 H1 2005 H2 2005 Revenue 205.5 221.9 207.4 229.5 Gross profit 80.7 82.5 76.87 90.9 % of revenue 39.3% 37.2% 37.0% 39.6% Indirect costs <16.70> <15.4 > <17.07> <20.2> % of revenue <8.1%> <6.9%> <8.2%> <8.8%> R&D <15.4> <17

  8. Slide 8: Financial income and expenses

    2005/2004 income statements Financial income and expenses 2004 2005 Gains/(losses) on foreign <2.1> 1.2 exchange Interest expense <2.8> <2.9> Convertible bond premium 0 <1.1> amortization Other expenses <0.4> <0.4> TOTAL <5.3> <3.2> Results for 2005 8 March 16, 2006

  9. Slide 9: Exceptional items

    2005/2004 income statements Exceptional items € in millions H1 2005 H2 2005 Total 2005 2004 Inventory write-downs <8.9> 0 <8.9> 0 (Change in methodology) Non-recurring engineering costs <9.9> <4.8> <14.7> - Restructuring charges <2.5> <7.3> <9.8> <2.2> Litigation and non-recurring legal expenses <2.

  10. Slide 10: Half-year comparison by segment

    2005/2004 income statements Half-year comparison € in millions H2 2003 H1 2004 H2 2004 H1 2005 H2 2005 . Revenue Terminals 162.4 167.6 176.4 163.1 178.6 Software & Services 31.4 35.3 38.4 40.5 50.9 Other 1.1 2.5 3.7 0 7 Total 194.9 205.9 221.9 207.4 229.5 . Gross margin* Terminals 42.0% 43.4% 43.1%

  11. Slide 11: Gearing

    2005/2004 income statements Gearing € in millions 12/31/2005 6/30/2005 31/12/2004 Financial liabilities <134> <99.9> <49.1> Net cash & cash equivalents 68.3 40.5 7.6 Cash from Assets held for sale 2.3 - - NET DEBT <59.4> <41.5> <63.4> Equity 101.3 113.6 130.2 GEARING <62.6%> <52.3%> <31.9%> Results

  12. Slide 12: Cash flow

    2005/2004 income statements Cash flow € in millions Half-year Annual H1 2005 H2 2005 2004 2005 . Cash flows from operations (9) (10.9) 17.2 (19.9) . Change in work cap requirements (9.6) 6.6 (12.4) (3) . Net cash from operating activities (18.6) (4.3) 4.8 (22.9) . Net cash from investing activities

  13. Slide 13: Policies

    POLICIES “The beginning of wisdom is to call things by their names.” Confucius

  14. Slide 14: Assessment: main obstacles to growth and profits

    ASSESSMENT Cf. H1 2005 results Sept. 21, 2005 More effective culture & communication needed The main obstacles to growth and profits… 1 A deficient supply chain 2 High non-quality costs 3 Inadequate control over industrial process 4 Product development cycles too long and too “in-house” 5 Fragmentar

  15. Slide 15: Policies and Achievements

    POLICIES AND ACHIEVEMENTS Policy area Objective Current situation Delta Cost control €13M in cost-cutting €14.2M in cost-cutting + € 1.2M and (€ 3M) and €7M in and €7.3M in in costs restructuring charges restructuring charges Redesign to cost €7M savings in 2006 €9M at June 2006 + €2M at year-end As

  16. Slide 16: Operating Activities

    OPERATING ACTIVITIES Supply chain and Quality Plastic injection molding close to customers (Brazil, Romania, China) Quality and supply chain functions in the factories 2 new subcontractors coming on stream: Romania in June and China in August New product launches 3 single-application terminal models

  17. Slide 17: A Complete Product Range

    A COMPLETE PRODUCT RANGE i9400 i8500 designed for specific markets TAXIS, LOTTERY, DELIVERIES i8200 SELF-SERVICE Value-added functionalities LARGE-SCALE RETAIL i7910 HOSPITALITY i6770 MERCHANTS i7780 i6550 i7310 i6280 i5310 i5100 i3300 i3010/50 Pin-pads Countertop Portable Mobile Unattended Results

  18. Slide 18: Major Signs of Success: Bank of America, Kodak

    MAJOR SIGNS OF SUCCESS Bank of America (North America) Banking and financial €12M + related services over a 2-year period Deployment early in Q2 2006 Kodak (global) Global partnership – payment solutions for photo development kiosks Current global kiosk population: 80,000 units Growth potential: 300

  19. Slide 19: Major Signs of Success: NTT Data, FIMPE

    MAJOR SIGNS OF SUCCESS NTT Data Corporation (Japan) Countertop + mobile terminals NTT Data operates on INFOX-NET, the largest network in Japan Current population: 300,000 terminals Sales potential in 2006: €5 – 15 million FIMPE (Mexico) Ingenico chosen as strategic partner to a fund including 16 nat

  20. Slide 20: Major Signs of Success: Barclaycard, Infotech, CIM Italia

    MAJOR SIGNS OF SUCCESS Barclaycard (UK) Contracts extended to 2008 Revenue: €50 million (service included) Infotech (Iran) New distributor Sales in 2005: €3.5 million Potential 2006/2008 : over €25 million CIM Italia (Italy) EMV migration decided on in H2 2005 – 80,000 terminals to be replaced by en

  21. Slide 21: Major Signs of Success: Commonwealth Bank, Crédit Agricole

    MAJOR SIGNS OF SUCCESS Commonwealth Bank (Australia) Largest installed base in Australia – ~100,000 units Sales potential in 2006: over €7 million 2006 – 2008: over €25 million Crédit Agricole (France) I5100 referenced (Unicapt 32 application) High growth potential Results for 2005 21 March 16, 2006

  22. Slide 22: Roadmap 2006

    ROADMAP Sharper focus on core business Restore profitability 2006 2006 Stabilize products Improve supply chain Results for 2005 22 March 16, 2006

  23. Slide 23: Roadmap 2007

    ROADMAP Service offer deployment Software solution for large retailers 2007 2007 Global integrated service offer Results for 2005 23 March 16, 2006

  24. Slide 24: Roadmap 2008

    ROADMAP “Vertical” solutions Self-service Top-up Lottery Payment Payment Inventory 2008 2008 Ticketing applications Faster store checkout Results for 2005 24 March 16, 2006

  25. Slide 25: Guidance, Questions/Answers

    Questions/ « Guidance » Answers

Ingenico — FY2005 Earnings Presentation on 6ix